Quokka Sports, Inc. v. Cup Intern. Ltd.

99 F. Supp. 2d 1105, 1999 U.S. Dist. LEXIS 21000, 1999 WL 1835398
CourtDistrict Court, N.D. California
DecidedDecember 13, 1999
DocketC-99-5076-DLJ
StatusPublished
Cited by8 cases

This text of 99 F. Supp. 2d 1105 (Quokka Sports, Inc. v. Cup Intern. Ltd.) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Quokka Sports, Inc. v. Cup Intern. Ltd., 99 F. Supp. 2d 1105, 1999 U.S. Dist. LEXIS 21000, 1999 WL 1835398 (N.D. Cal. 1999).

Opinion

SUPPLEMENTAL ORDER

JENSEN, District Judge.

On December 8, 1999, the Court heard argument on plaintiffs motion for a temporary restraining order (TRO). Terry Gross appeared on behalf of plaintiff; there was no appearance for defendants. Neil Smith appeared on behalf of Network Solutions, Inc. (NSI), although NSI was dismissed as a defendant just prior to the hearing. 1 On December 9, 1999, the Court granted plaintiffs request for a TRO and set a schedule for the preliminary injunction hearing. This supplemental order provides a more detailed explanation of the Court’s reasoning in support of the December 8,1999 Order.

I. BACKGROUND

A. Factual Background and Procedural History

The essence of plaintiffs complaint is one of trademark infringement based on defendants’ registration and use of the domain- name americascup.com. Plaintiff claims to have the exclusive rights to operate the official website connected with the sailing event known as the America’s Cup. Plaintiff currently operates a website at americascup.org. The First Amended Complaint (hereafter, Complaint) has eight claims: (1) trademark infringement, 15 U.S.C. § 1114(1); (2) unfair competition and false designation of origin, 15 U.S.C. § 1125(a); (3) trademark dilution, 15 U.S.C. § 1125(c); (4) common law unfair competition; (5) unfair competition, Cal. Bus. & Prof.Code § 17200; (6) California Anti-Dilution Statute, Cal. Bus. & Prof. Code § 14330; (7) false advertising, Cal. Bus. & Prof.Code § 17500; and (8) Anticy-bersquatting Consumer Protection Act, 15 U.S.C. § 1125(d). The Anticybersquatting Consumer Protection Act was signed into law on the same day as this complaint was filed, November 29,1999.

America’s Cup Properties Inc. (ACPI) is the holder of the trademark “America’s Cup,” and all other intellectual property relating to the America’s Cup event. See Second Ramadan Decl. Ex. A at 2. The marks are registered in the United States Patent and Trademark Office (PTO) and in other countries, including New Zealand. See Chapman Decl. ¶ 6-9, Ex. A, B, C. Procedurally, the shares of ACPI are transferred to the winner of the America’s Cup event. See Chapman Decl. ¶ 4. Thus, in 1996 after the successful challenge by Team New Zealand, the share of ACPI, and the rights associated with the “America’s Cup” marks, passed to the Royal New Zealand Yacht Squadron. See id. The Royal New Zealand Yacht Squadron licensed the marks to its subsidiary, AC 2000 Limited, a New Zealand Company. See Second Ramadan Decl. Ex. A at 1.

In December 1996, AC 2000 gave an exclusive license to Telecom New Zealand *1108 Limited (Telecom NZ) to operate the official’s America’s Cup website. See Chapman Decl. ¶ 17. In April 1997, Telecom NZ registered five different domain names: americaseup2000.org.nz, ameri-cascup2000.co.nz, amcup2000.org.nz, amc-up2000.co.nz, and teamnz .org.nz. See id. at ¶ 18. Apparently, Telecom NZ did not register any “.com” addresses, but instead limited itself to “.nz” addresses.

In February 1999, ACPI and AC 2000 became aware of defendants’ website and ownership of the americascup.com domain name. See id. at ¶23. They became aware of it because Arron Brett, director of Cup International, sent an email that was brought to the attention of ACPI and AC 2000. See id. The email stated:

We are the owners of the domain names teamnewzealand.com and americasc-up.com[.] We are an Auckland based Company and we are rapidly developing both of these sites to prepare for the huge volume of traffic expected for the Cup. As you can appreciate the rule that applies to real estate applies to the web — location, location, location. Both of these .corn domain names are best addresses especially for the lucrative American market. My colleague informs me that you made enquiry some time last year of the address teamnewz-ealand.com. We would like to meet with you to outline our plans for these sites and discuss with you the interest you have in this domain name for Line7. I will call you shortly. If you would like to contact me quickly my mobile number is 021 217 1057
Kind Regards
Arron Brett
Director
for Cup International Limited

Id. Ex. D (emphasis added). After receipt of this email, ACPI and AC 2000 investigated defendants’ website and found that in their opinion, the website at americasc-up.com was masquerading as the official website. See id. at ¶ 24-25. A series of letters ensued between counsel for both sides. See id. at ¶ 26-28, Ex. E,. F, G. Some alterations were made to the website at americascup.com, but defendants’ position remained that they were not infringing any valid America’s Cup marks, and in particular, that the New Zealand marks were invalid. See id. at Ex.G at 1-2. Defendants’ believed the America’s Cup name to be in the public domain, and made reference to a 1987 decision by an Australian Hearing Officer in support of this claim. See id. at 2, Ex.I at 2-3.

In April 1999, AC 2000 signed a license agreement with plaintiff Quokka to operate the official America’s Cup website. See id. at ¶20, see also Second Ramadan Decl. Ex.A. While Telecom NZ was not a party to that license, they apparently sub-licensed their Internet rights to plaintiff under a separate agreement (the “Website Agreement”). See Second Ramadan Decl. Ex.A at 1-2. Additionally, the parties apparently entered into another agreement referred to as the “Domain Name Agreement.” See id. Quokka is a Delaware corporation having its principal place of business in San Francisco, California. See id. at 1.

After the April license, further discussion ensued between ACPI, AC 2000, and defendants. See Chapman Decl. at ¶32-38. This included initiation of the NSI domain name dispute resolution process. See id. As part of that process, the defendants were given until November 6, 1999 to respond. See id. at ¶ 37. On November 3, 1999, defendants filed suit in New Zealand to invalidate the New Zealand “America’s Cup” trademarks and for a declaratory judgment of noninfringement of those same marks. See id. Ex.L. On November 24, 1999, ACPI and AC 2000 countersued in New Zealand alleging, essentially, that defendants had infringed the New Zealand “America’s Cup” trademarks. See id. Ex.M. The Court notes that both of these actions appear to involve solely the New Zealand registrations, and not the U.S. PTO registrations.

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99 F. Supp. 2d 1105, 1999 U.S. Dist. LEXIS 21000, 1999 WL 1835398, Counsel Stack Legal Research, https://law.counselstack.com/opinion/quokka-sports-inc-v-cup-intern-ltd-cand-1999.